In the Union Budget for the year 2021-22, excise duty has been reduced by the announcement of the imposition of ‘Agricultural Infrastructure Development Cess’.
The state will lose 900 to 1000 crores due to reduction of excise duty
Public welfare programs will be adversely affected
The adverse effects of the Kovid epidemic have adversely affected economic activities: a possible 30 percent reduction in state revenue
GST has not been received from the center 3700 crores amounting to
Potential cuts in the state’s rice quota are also likely to cause major losses
Raipur, 16 February 2021. Chief Minister Bhupesh Baghel has written a letter to the Union Finance Minister Smt. Nirmala Sitharaman, requesting him to pay back the amount he received as excise duty to the state of Chhattisgarh.
The Chief Minister has written in the letter that the year 2020-21 has been an extremely difficult financial year due to the effects of the Kovid epidemic. This year, due to adverse impact on all economic activities in the state, the state’s own financial sources are expected to decrease by about 30 percent. Recently, in the Union Budget for the year 2021-22, you have announced the reduction in excise duty on petroleum products, gold and silver and many other items, instead of replacing them with ‘Agricultural Infrastructure Development Cess’. This is expected to cause an additional loss of Rs 900 to 1000 crores to the state in the coming financial year.
Mr. Baghel has also mentioned in the letter that the GST of the state in the financial year 2020-21. An amount of Rs 3700 crore is yet to be received from the Central Government under the head of compensation. After the announcement of 60 lakh tonnes of rice from the state in the past by the central government, the rice quota of the state has been cut by 16 lakh tonnes, due to which the state is likely to suffer a huge loss in the disposal of the extra paddy collected by the state .
The Chief Minister has written in the letter that the decision to set up ‘Agricultural Infrastructure Development Fund’ is welcome, but the decision to reduce excise duty is sure to adversely affect the resources of the state. The additional damage caused by the excise duty deduction to a state already struggling with financial crisis will adversely affect the public welfare programs being run for the interests of the citizens of the state. He has requested the Union Finance Minister that in view of the limited resources available to the states compared to the Center, the State of Chhattisgarh should take the trouble of deciding to get the amount of ex-gratia to be received as an excise duty, so that the state will not get any additional Do not face financial loss.
